Completing the derivatives securities markets reading

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Reference no: EM131886282

After completing the Derivatives Securities Markets reading, A student was not sure whether she fully understood the attributes of different types of derivatives. To clear the concepts, she sought help from an instructor. In response to the student's question regarding futures and forward contracts, the instructor stated the following: Unlike futures contracts, forward contracts are marked to market daily, and a clearinghouse backs the buyer's and seller's position in a forward contract. Briefly, discuss if you disagree with the instructor.

Reference no: EM131886282

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